https://www.taxtmi.com/caselaws?id=792759 Sections 269SS and 269T require loans, deposits and repayments above the prescribed limit to be routed through banking channels, and journal entries can amount to a technical breach of those provisions. Penalty under sections 271D and 271E is not automatic where section 273B applies, but the assessee must prove reasonable cause. On the facts, no convincing material showed any compelling business exigency or unavoidable circumstance for using journal entries for the promoter-linked loan and the housing company adjustments. Bona fides, genuineness of the transactions, and administrative convenience were insufficient without proof of reasonable cause, so the penalty orders were sustained. en-us Tue, 19 May 2026 00:00:00 +0530 Wed, 03 Jun 2026 08:50:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792759 Sections 269SS and 269T require loans, deposits and repayments above the prescribed limit to be routed through banking channels, and journal entries can amount to a technical breach of those provisions. Penalty under sections 271D and 271E is not automatic where section 273B applies, but the assessee must prove reasonable cause. On the facts, no convincing material showed any compelling business exigency or unavoidable circumstance for using journal entries for the promoter-linked loan and the housing company adjustments. Bona fides, genuineness of the transactions, and administrative convenience were insufficient without proof of reasonable cause, so the penalty orders were sustained. Case-Laws Income Tax Tue, 19 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792759